Joly, who took the reins in 2012 under extreme pressure to whip the company back into shape, has slashed costs, invested in its online business -- even offering free shipping -- and focused on providing better customer service inside its stores.

It paid off, as things were looking brighter for the company earlier in 2015, posting net income of $418 million in the first three quarters of the year.

But the dismal holiday season has pushed Best Buy back into rocky territory.

"They've been price-matching everybody, so I don't think they're going to make any money," said Rosenblum. "It's really disappointing."

Retailers need to start "winding down the cadence of promotions," Rosenblum said. "This hyper-promotional madness ... is just turning around and shooting retailers in the foot."

Best Buy also reiterated that it expected international revenue to fall 30% in the last quarter of the year, due to low demand in Canada and currency fluctuations. The company has already shuttered many of its Canadian stores in recent years.